North Energy's first exploration well in the Barents Sea is under way. The Alta-based company has thus started the first of three wells off the Finnmark coast in 2011.

Norvarg (PL 535) is the company's first well of the year.  At least three of the planned drillings in 2011 will take place in the Barents Sea. This makes North Energy one of the companies with the highest exploration activity in the area this year. The drilling of Heilo (PL 530) will commence immediately afterwards, to be followed directly by Zapffe (PL 518).

North Energy was in first quarter awarded five new licences in APA 2010, including one operatorship. In addition, a share of 10% in the PL 370 licence, Kakelborg, has been acquired and ownership in PL 385, Jette, has been increased further. The company's licence portfolio now totals 22 licences following the licensing awards in the 21st licensing round.

- "We are satisfied with the awards and the acquisitions we have made. In addition, there are positive developments in terms of the processes prior to opening up new acreage in our focus areas in the Barents Sea, Lofoten and Vesterålen. Now we have reached the planned activity level with continuous wells being drilled and are focusing fully on our drilling campaign in the Barents Sea. Norvarg has just commenced drilling and we have six fixed wells lined up," says CEO Erik Karlstrøm.

"North Energy takes a very positive view on the promising discovery at Skrugard earlier in April this year.  It shows that North Energy's belief in the prospectivity in the Barents Sea is right," says Erik Karlstrøm.

 

So far, the company has participated in two wells. Hydrocarbons were detected in both wells, but so far only Fogelberg (PL 433) has proven commercial potential. The pipeline planned from Luva to Nyhamna may provide an opportunity for earlier development and production of the Fogelberg discovery than previously anticipated.

 

North Energy reported a loss after tax for the first quarter of 2011 of NOK 10 million. The company's net cash position is NOK 372 million, including tax refund. 

 

The presentation of the first quarter results will be held at Felix conference centre, Bryggetorget 3, Vika, from 09.00. The presentation may be followed by webcast on the company's own website (www.northenergy.no) or at http://www.serialive.com/watch.php?id=13288

 

The presentation and first quarterly report is attached.

 

The company will be represented by:

 

CEO Erik Karlstrøm, tel.: +47 476 52 990

 

CFO Knut Sæberg, tel.: +47 918 00 720

 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.